Lease or SellAstro Company owns equipment with a cost of $ and
accumulated depreciation of $ that can be sold for $
less a sales commission. Alternatively, Astro Company can lease
the equipment for three years for a total of $ at the end
of which there is no residual value. In addition, the repair,
insurance, and property tax expense that would be incurred by Astro
Company on the equipment would total $ over the three year
lease.aPrepare adifferential
analysison August as to whether Astro Company should lease
Alternative or sell Alternative the equipment. If required,
use a minus sign to indicate a loss.bShould Astro Company lease Alternative
or sell Alternative the equipment?
